Last week, the US Department of Justice and UK regulators announced further investigation into the proposed merger of the two Big Five publishers. According to Michael Cader of Publishers Lunch, the DOJ’s request for more information is no small matter and occurs in a limited number of cases—meaning that the deal could be challenged and/or scuttled as a result. However, he noted (subscription required), “The 2013 merger between Penguin and Random House received considerable scrutiny from multiple regulatory bodies around the world before being approved without conditions.” The UK investigation is likely less threatening to the deal, given the smaller size of Simon & Schuster’s UK division relative to that market. A Penguin Random House spokesperson said, “We are continuing to cooperate with the DOJ and continue to expect a closing during 2021.”
Meanwhile, PRH reported that worldwide revenue increased 4.6 percent in 2020, and profits increased by a whopping 23.3 percent. Parent company Bertelsmann said the increase is a result of increased digital sales and online sales.
Jane Friedman has spent her entire career working in the publishing industry, with a focus on business reporting and author education. Established in 2015, her newsletter The Bottom Line provides nuanced market intelligence to thousands of authors and industry professionals; in 2023, she was named Publishing Commentator of the Year by Digital Book World.
Jane’s expertise regularly features in major media outlets such as The New York Times, The Atlantic, NPR, The Today Show, Wired, The Guardian, Fox News, and BBC. Her book, The Business of Being a Writer, Second Edition (The University of Chicago Press), is used as a classroom text by many writing and publishing degree programs. She reaches thousands through speaking engagements and workshops at diverse venues worldwide, including NYU’s Advanced Publishing Institute, Frankfurt Book Fair, and numerous MFA programs.
